Today the White House Office of Management and Budget released a guidance memo regarding administrative costs related to the American Recovery & Reinvestment Act. The memo is designed to encourage states to utilize existing flexibilities to recover administrative costs related to the ARRA in a more timely manner. Specifically, the memo cites the State-wide Cost Allocation Plan (SWCAP) outlined in OMB Circular A-87 as the mechanism for recovering costs. Two options – estimated costs for centralized services or billed services -- are provided for states to recoup costs more quickly than is otherwise allowed under SWCAP.
The memo is attached.
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